Budget 2025: Govt To Support Electronic Equipment Industry

SUMMARY

Sitharaman said that the Centre will provide support to integrate “domestic manufacturing capacity” with global supply chains to capitalise on Industry 4.0 opportunities

As part of this, the government will form facilitation groups, comprising senior officials and industry representatives, for select products and supply chains

The FM’s also underlined that India is well placed to leverage Industry 4.0 opportunities owing to the availability of “high skills and talent” in the country

Reiterating the focus on opportunities in the Industry 4.0 ecosystem, finance minister (FM) Nirmala Sitharaman, in her Budget speech on Saturday (February 1), said that the government is willing to give a much-needed spur to the domestic electronic equipment industry.

Sitharaman said that the Centre will provide support to integrate “domestic manufacturing capacity” with global supply chains to capitalise on Industry 4.0 opportunities. As part of this, the government will form facilitation groups, comprising senior officials and industry representatives, for select products and supply chains.

The FM’s Budget speech also underlined that India is well placed to leverage Industry 4.0 opportunities, owing to availability of “high skills and talent” in the country.

“Facilitation groups with the participation of senior officers and industry representatives will be formed for select products and supply chains… Through this, there are huge opportunities related to Industry 4.0, which needs high skills and talent. Our youth have both. Our government will support the domestic electronic equipment industry to leverage this opportunity for the benefit of the youth,” said Sitharaman.

Industry 4.0 is the deployment of emerging technologies such as artificial intelligence (AI), Internet of Things (IoT), robotics and big data in manufacturing and industrial processes.

Besides, the Centre also announced a slew of new sops and incentives for the larger manufacturing sector in the budget. The FM exempted basic customs duty (BCD) on parts of open cells for LCD/LED TVs. She also announced the addition of 35 additional capital goods for EV battery manufacturing, and 28 additional capital goods for mobile phone battery manufacturing to the list of exempted capital goods.

Besides, the FM also proposed a National Manufacturing Mission for small, medium and large enterprises (MSMEs), which will provide policy support, execution, and roadmaps, among others.

Presenting her eighth consecutive Union Budget, Sitharaman also proposed a new INR 10,000 Cr fund of funds (FoFs) scheme, an INR 1 Lakh Cr fund to transform Indian cities into growth hubs, and a comprehensive social security scheme for gig workers, among others.